Legal Environment Chapter 2 Study Guide
Orson files a suit against Portia. Before going to trial, the parties meet, with their attorneys to represent them, to present their dispute to a third party who is not a judge but who imposes a resolution on the parties. This is
Answer: A. arbitration. Pages: Section 4
HoneyBee Foods, Inc., in Illinois, and Jelly Roll Pastries, in Kentucky, consent to have their dispute resolved in arbitration according to the law of Illinois. This is a ground for a court to
Answer: A. compel arbitration. Pages: Section 4
Fresh Harvest Company, which is based on Georgia, packages and sells vegetables. Hayden, who is a resident of Indiana, buys a Fresh Harvest product, eats it, and suffers severe food poisoning. Hayden wants to file a suit against Fresh Harvest. The diversity of citizenship between these parties means that
Answer: A. federal and state courts have concurrent jurisdiction. Pages: Section 2
As a judge in a federal court, Christine can decide, among other things, whether the laws or actions of the executive and legislative branches are constitutional. The process for making this determination is known as
Answer: A. judicial review. Pages: Section 1
A Maryland state court can exercise jurisdiction over National Insurance Corporation, an out-of-state company, if the firm has
Answer: A. minimum contacts with the state. Pages: 27 Section 2
To resolve a dispute in nonbinding arbitration, Alyson and Baltimore and Chuck in Denver utilize E-Resolve, an online dispute resolution (ODR) service. This limits these parties; recourse to the courts
Answer: A. not at all. Pages: Section 4
Lucille files a suit against Murray. They meet, and each party's attorney argues the party's case before a judge and jury. The jury presents an advisory verdict, after which the judge meets with the parties to encourage them to settle their dispute. This is
Answer: B. a summary jury trial. (advisory verdict only) Pages: Section 4
The Iowa Supreme Court rules against Jennifer in a case against Kut-Rate Stores, Inc. Jennifer wants to appeal her case to the United States Supreme Court. She must ask the Court to issue a writ of
Answer: B. certiorari. Pages: Section 3
Marcus files a suit against Naomi in an Ohio state court. Naomi's only connection to Ohio is an ad on the Web originating in Pennsylvania. For Ohio to exercise jurisdiction, the issue is whether Naomi, through her ad, has
Answer: B. conducted substantial business with Ohio residents. Pages: Section 2
Lorena files a suit against Milton. Before going to trial, the parties, with their attorneys, meet to try and resolve their dispute. A third party suggests or proposes a resolution, which the parties may or may not decide to adopt. This is
Answer: B. mediation. Pages: Section 4
Arnold loses his suit against Buffy in Colorado state trial court. Arnold appeals to a state intermediate court of appeals and loses again. Arnold would appeal next to
Answer: B. the Colorado Supreme Court. Pages: Section 3
Lewis wants to file a suit against Mikayla. Before any court can hear the case
Answer: B. the court must have jurisdiction. Pages: Section 2
Transcontinental Tours, a U.S. firm, and Victoria Hotels, Ltd., a Canadian firm, enter into a contract that does not have a forum-selection or choice-of-law clause. Litigation between Transcontinental and Victoria over a dispute involving this contract may occur in
Answer: C. Canada, the United States, or both. Pages: Section 5
Bean House Coffees and Java Distributors, Inc., have a long-standing business relationship that they would like to continue. For this reason, they may prefer to settle any dispute between them through mediation because
Answer: C. the process is not adversarial. Pages: Section 4
Delia files a suit against Eduardo in a Florida state court over the ownership of a boat docked in a Florida harbor. Both Delia and Eduardo are residents of Georgia. Eduardo could ask for a change of venue on the ground that Georgia
Answer: D. is a more convenient location to hold the trial. Pages: Section 2
The Montana Supreme Court rules against Natural Grocery Mart in a case against One Stop 2 Shop Stores, Inc. Natural Grocery files an appeal with the United States Supreme Court. The Court does not hear the case. This
Answer: D. means that the Montana court's decision is the law in Montana. Pages: Section 3
The least expensive method of resolving a dispute between Ronald and Sharon may be
Answer: D. negotiation because no third parties are needed. Pages: Section 4
Transnational Corporation and United Shipping, Inc., agree to a contract that includes an arbitration clause, if a dispute arises, a court having jurisdiction may
Answer: D. order a party to submit to arbitration. Pages: Section 4
First Community Credit Union and General Hydraulics. Inc., have their dispute resolved in arbitration. Before determining the award, the arbitrator meets with First Community's representative to discuss the dispute without General Hydraulics; representative being present. If this meeting substantially prejudices General Hydraulics; rights, a court will most likely
Answer: D. set aside any award. Pages: Section 4
Service Employees International Union and Timberline Products, Inc., have their dispute resolved in arbitration. The arbitrator arbitrates issues that the parties did not agree to submit to arbitration. This is a ground for a court to
Answer: D. set aside the award. Pages: Section 4
International treaties never stipulate arbitration for resolving disputes.
Answer: False Pages: Section 5 If False Why?:
The United States will not enforce a foreign court's decision.
Answer: False Pages: Section 5 If False Why?:
The federal courts are superior to the state courts.
Answer: False Pages: 26 Introduction If False Why?: "Keep in mind that the federal courts are not superior to the state courts."
Because corporations are not considered legal persons, courts use different principles to determine whether it is fair to exercise jurisdiction over a corporation.
Answer: False Pages: 27 Section 2 If False Why?: "Because corporations are considered legal persons, courts use the same principles to determine whether it is fair to exercise jurisdiction over a corporation."
For purposes of diversity of citizenship, a corporation is a citizen only of the state in which its principal place of business is located.
Answer: False Pages: 29 Section 2 If False Why?: "For purposes of diversity jurisdiction, a corporation is a citizen of both the state in which it is incorporated and the state in which its principal place of business is located."
Courts of appeals conduct new trials in which evidence is submitted to the court and witnesses are examined.
Answer: False Pages: 36 Section 2 If False Why?: It is not a new trial, nor do they hear witnesses. "Generally, courts of appeals do not conduct new trials, in which evidence is submitted to the court and witnesses are examined. Rather, an appellate court panel of three or more judge reviews the record of the case on appeal, which includes a transcript of the trail proceedings."
U.S. district courts have concurrent jurisdiction with state courts in matters involving federal questions.
Answer: False Pages: 39 Section 3 If False Why?: "U.S. district courts have original jurisdiction in matters involving a federal question and concurrent jurisdiction with state courts when diversity jurisdiction exists."
In mediation, the mediator proposes a solution and makes a decision resolving the dispute.
Answer: False Pages: 41 Section 4 If False Why?: "In mediation, a neutral third party acts as a mediator and works with both sides in the dispute to facilitate a resolution." "Although the mediator may propose a solution (called a mediator's proposal), he or she does not make a decision resolving the matter."
Small claims courts are inferior trial courts.
Answer: True Pages: Section 2
A court's review of an arbitrator's award may be restricted.
Answer: True Pages: Section 4
The verdict in a summary jury trial is not binding.
Answer: True Pages: Section 4
Laws would be meaningless without the courts to interpret and apply them.
Answer: True Pages: 26 Section 1
A court can exercise jurisdiction over property that is located within its boundaries.
Answer: True Pages: 27 Section 2
The minimum-contacts requirement is usually met if a corporation advertises or sells its products within a state.
Answer: True Pages: 27 Section 2
Under the authority of a long arm statute, a court can exercise personal jurisdiction over certain out-of-state defendants.
Answer: True Pages: 27 Section 2
To have standing to sue, a party must have complaining sufficient stake in a matter to justify seeking relief through the court system.
Answer: True Pages: 33 Section 2
The United States Supreme Court can review any case decided by any of the federal courts of appeals.
Answer: True Pages: 40 Section 3
Litigation is the process of resolving a dispute through the court system.
Answer: True Pages: 40 Section 4
A mini-trial is a private proceeding in which each party's attorney argues the party's case before the other party.
Answer: True Pages: 43 Section 4
Mandatory arbitration clauses in employment contracts are generally enforceable.
Answer: True Pages: 43 Section 4
